Business owners' estates: When cash can be a problem

A complex, often overlooked threat

clock • 4 min read

It’s common for business owners to be unaware of the ‘excepted asset’ rule, writes Andrew Aldridge

Across the UK, thousands of SME directors are quietly accumulating excess cash within their companies, often a by-product of years of disciplined trading, prudent cost management, and perhaps a touch of post-pandemic caution. However, while this surplus may seem like a sign of healthy business management, it could also represent a hidden threat to business owners' estates, a missed opportunity for financial advisers to deliver value, and a threat to wider prudent tax planning.  The challenge lies in how this surplus cash is classified. Under current HM Revenue & Customs (HMRC) rules,...

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